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John Boehner's fiscal cliff ‘Plan B’ stalls in Senate

Boehner told the president of his plan last night on a phone call. | Jay Westcott/POLITICO

Even after that movement, Obama and Boehner are still a considerable distance apart on taxes. Obama wants to increase tax rates on income over $400,000. Boehner wants the threshold to be set at $1 million; the House GOP proposal would keep the lower Bush-era rates in place for income brackets below that. In essence, Boehner is seeking $1 trillion in revenue and $1 trillion in cuts — but he doesn’t think the president is willing to get there.

Boehner isn’t pulling out of negotiations with the White House to strike a sweeping $2 trillion agreement, but leadership sources say they hope this move prods the administration to move toward them.

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“He talked about a ‘balanced’ approach on the campaign trail,” Boehner said. “What the White House offered yesterday — $1.3 trillion in revenue for only $850 billion in spending cuts — cannot be considered balanced. We’re going to keep the door open in hopes the president can find a way to support a balanced approach.”

The impasse doesn’t bode well for future negotiations. With another debt ceiling crisis looming in early 2013 as the U.S. government runs up against its $16.4 trillion borrowing limit, there are few signs those negotiations will go any better than last year, when the United States suffered a debt downgrade.

The “Plan B,” as it’s being called internally, was presented to lawmakers at a closed meeting Tuesday. The House Republican whip team will begin gauging its support during Tuesday evening’s vote series.

Boehner made a simple argument to House Republicans: tax rates will go up on everyone Jan. 1 and “the question for us is real simple: How do we stop as many of those rate hikes as possible?” Boehner told House Republicans.

“For weeks, Senate Republicans — and a growing number of you — have been pushing for us to pivot to a ‘Plan B,’” Boehner said. “I think there’s a better way. But the White House just can’t seem to bring itself to agree to a ‘balanced’ approach, and time is running short. Taxes are going up on everyone on Jan. 1. They’re baked into current law. And we have to stop whatever tax rate increases we can. In the absence of an alternative, as of this morning, a ‘modified Plan B’ is the plan.”

But Democrats reacted angrily to Boehner’s move, blasting the speaker for failing to reach an accord with Obama and asserting that Ohio Republican knows his bill can’t get through the Senate or get Obama’s signature. The White House, in a statement, rejected the plan. House Minority Whip Steny Hoyer (D-Md.) told reporters Boehner’s plan was a “political ploy” to give Republicans cover from criticism that they’re protecting millionaires.

This is a sensible way forward. Obama and his team campaigned on taxing millionaires and billionaires. Now he will get it. I never understood how someone making 250K in New York with related city and state taxes could be viewed as a millionaire. Even Schumer and Pelosi supported a $1 million threshold. The person is doing fine but not part of the targeted group - the rich

with do consideration with cuts in defense and changes in policy as it relates to foriegn aid. might have a chance . also need to cut subsidies to any company with significant profits- hey lets means test subsidies like we plan to do with entitlements. now thats the ticket

This is a sensible way forward. Obama and his team campaigned on taxing millionaires and billionaires. Now he will get it. I never understood how someone making 250K in New York with related city and state taxes could be viewed as a millionaire. Even Schumer and Pelosi supported a $1 million threshold. The person is doing fine but not part of the targeted group - the rich

with do consideration with cuts in defense and changes in policy as it relates to foriegn aid. might have a chance . also need to cut subsidies to any company with significant profits- hey lets means test subsidies like we plan to do with entitlements. now thats the ticket

This IDIOT doesn't seem to get it. Its not MY WAY OR THE HIGHWAY!! What part of that don't he get? The american PUBLIC wants the taxes to go up on 250,000 PERIOD! This is what President Obama ran on, this is what the american people want and that is what the american people expect. Every single POLL out now says 60% plus WANT TAXES TO GO UP ON FOLKS MAKING 250,000 and until he and this dumb arse teabag congress gets that thru their head, THERE IS NO DEAL!! He thinks he can bulldoze his way into making President obama bow down to his demands. DO NOT DO IT PRESIDENT OBAMA If we go over the cliff and folks lose trillions of dollars of the 401K plan again, folks start losing jobs again and we go into another recession because of GOP IDEOLOGY the americna people, the business community, the international community will BLAME THE REPUBLICANS and they will pay a huge price for being intransagient and unreasonable.

Cuts FIRSTUS Will Obama be moving to Belgium to escape taxes? Will Obama create a LOOPHOLE to fund his library tzx free? Congress has a habit of exempting themselves and Obama is from Chicago - one day the media will figure that out

We do not have a 'Revenue' problem...We have a Spending problem, and a 'Debt' problem as a direct result of the Spending problem. Obama's 'Plan' results in trillion dollar defecits for ever and never solves anything...Neither does the Republican non-solution of caving on spending. We need Real solutions, not more posturing.

Here is the reality; The proposed plans do nothing to solve the real problem, the Spending problem, and until that Spending is controlled, all the taxes in the world will not make a difference. Lets start with a Budget. Because of Harry Reid and the Progressives we have not seen one for four years, and it is the annual Budget negotiations where proper planning and analysis happen...It is that process that in the past has forced fiscal reality on the Washington class who irresponsibly choose to give away money we do not have rather than dealing honestly with the Citizens and the problem. We must live withing our means.

I have to wonder if Obama knows that 400,000 is neither a million nor a billion.His Marxist Manifesto does not put a number on "wealthy". It does, however, require that Obama "raise taxes on them". Hello phase 1 of communism.

If Obama is not going to negotiate in good faith and put some balance which includes real spending cuts on the table then I guess he is trying to go over the cliff. I don't think Obama really cares what happens to the economy, as long as he is able to take property/wealth from one group and give it to another. That is the entire message of his presidency confiscate from those who have earned and give it to those that don't. It is an unsustainable policy. Obama owns the debt problem, as he has done NOTHING to curtail it and when it reaches $20 TRILLION in 2016, Obama will be laughing at everyone who has earned a nickel in this country.

That's true. You live in DC, LA, NY or any big city and $250 K is middle class. You live in the rural south and it may mean you are wealthy. The problem with Barry's approach is the folks in the cities who are making $250-400K are one of his main constituencies. Barry should bargain it down to $750K and then up the cuts to $900 Billion and both sides can agree and pat themselves on the back for being winners. The great thing about that is that it'll keep us from being Greece for at least another 5 years!

My Fellow Americans we are going over cliff, WTG Boner in again suceesfully screwing up negotiations that will cost you and your base way more than making a deal...Hope the Tea tards can save your speakership in '14 however Im not sure they are going to rally around someone that has effectivly raised taxes and gutted the military on fundamental grounds of no compromise...

Our electorate has to be the least informed - ever. Not only because we re-elected Obama, but everyone wants a compromise, but no one wants any cuts - anywhere - whatsoever. See todays WaPo poll. http://www.washingtonpost.com/...

Tax hikes are baked in for Jan 1. Tell me WHO baked that tasty cake? Thanks for nothing Boehner. Perhaps actually trying what has worked in the past would get you somewhere. Return to conservative roots, educate the people and stop crying and rolling over. Get in the fight or go home.

Our family is watching this next year and if we do not see real change in the attitude of our republican leadership back toward conservatism they will have lost us and we will begin baking a new conservative tea party. Yes, even if it means dems will own the government for a time. Right now I'm seeing no real measurable difference between the two.

Boehner and the rest of the repuks in the House clearly are crooks. The Senate has already passed a bill that will take care of this issue, not sure why the repuks in House are still playing games with the American people. Maybe they (repuks in the House) won't loose their jobs either way (playing games or not) which is SAD to me, they (repuks in Congress) have nothing to help the American people for the past 4+ years and have actually done everything they can to HARM the American people. American's need to VOTE all of the repuks in Congress OUT OF OFFICE ASAP.